1. Company estimates can be found in many of the financial statement categories. Estimates include:
   1. Loan loss reserves
   2. Discontinued operations
   3. Interest Expense
   4. All of the Above
   5. None of the Above

2. Trends observed in historical accounting information
   1. can be misleading due to changes in accounting procedures
   2. can provide a basis for estimating future trends
   3. are likely to be more valuable in turnaround situations
   4. a and b
   5. a and c
   6. b and c
   7. all of the above
   8. none of the above

3. Which is not true concerning the interest coverage ratio:
   1. Measures the number of times interest expense has been earned
   2. The higher the number, the more debt the company has
   3. The lower the number, the less the company has the ability to pay the debt
   4. Is generally higher for low leverage companies

4. Which ratio or ratios measure the overall efficiency of the firm in managing its investment in assets and in generating return to shareholders?
   1. Gross profit margin and net profit margin
   2. Return on investment
   3. Total asset turnover and operating profit margin
   4. Return on investment and return on equity

5. What is Form 10-K?
   1. A document filed with the AICPA, containing supplementary schedules showing management remuneration and elaborations of financial statement disclosures.
   2. A document filed with the Securities and Exchange Commission by companies selling securities to the public, containing much of the same information as the annual report as well as additional detail.
   3. A document filed with the Securities and Exchange Commission containing key business ratios and forecasts of earnings.
   4. A document filed with the Securities and Exchange Commission containing nonpublic information.

6. What does an increasing collection period for accounts receivable suggest about a firms credit policy?
   1. The credit policy is too restrictive.
   2. The firm is probably losing qualified customers
   3. The credit policy may be too lenient.
   4. The collection period has no relationship to a firms credit policy.